rakuten trade market reports : Page 8

US markets stage a strong rebound with Dow Jones rising over 1,000 points shrugging off the rise of Covid-19 cases globally as IMF has announced US$50bn aid package to combat Covid-19 pandemic. Meanwhile, China continues to see drop in Covid-19 cases.
The concerted efforts by major central banks globally have managed to calm the markets as US markets have recovered out of “correction territory”.
Regional markets will follow suit and on the local front, we expect the FBM KLCI to open firmer with 1,480 being the support level and possible moving to back to 1,500 level. Investors and traders should take the opportunity to position themselves for rebound play on oversold stocks.

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US FOMC held an emergency meeting yesterday slashing rates by 50 basis point with markets reacting positively initially before falling again as the Covid-19 remains the key drag to the global economic growth.
On the bright side, there are concerted efforts by major central banks around the world that working to reassure their commitment to provide stability and cutting rates to bolster the economy.
On the local front yesterday BNM have also cut rate by 25 basis point bringing a total 50 basis point cut for the year. We would expect the FBM KLCI to remain volatile with 1,460 being the support level. Investors and traders may look to bargain hunt oversold stocks for rebound play.

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Wall Street staged a strong rebound yesterday but we remain unconvinced as all factors impacting the markets still prevail. Though we may see a solid start for the regional markets today, sustainability remains a big question.
Locally we would expect the FBM KLCI to possibly re-testing the 1,480/90 level.
As such, we would recommend investors to take this opportunity to sell into strength with the view to bargain hunt when the market resumes its downside bias.

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It is going to be another interesting day for regional equities following Wall Street continuous decline last week. We reckon there would be more volatility ahead as sentiments has turned extremely cautious now.
Treasuries are currently at record lows with the US 10-year yield now at 1.11% thus we would expect foreign funds to U-turn back to Asia seeking for safer havens with reasonable yields like Malaysia with its 10-yield hovering at 2.83%.
As such, MYR is set to strengthen vis-à-vis the US$. Meanwhile the FBM KLCI is expected to test the 1,470 today after which the 1,450 would be the next support level.

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We are certainly into a correctional phase with the bottom remains unknown. Yesterday’s drastic decline on Wall Street has definitely changed the landscape from cautiously positive to now negative.
Unless there is a sharp immediate uptick, we reckon the selling to persist for equity markets. Already the US 10-year yield has hit an all-time low with investors scurrying for safer havens.
However, we may see some inflows of foreign funds into regional treasuries thus expect the MYR to strengthen against the greenback.
Meanwhile, we believe the FBM KLCI to break the 1,500 mark today with 1,470 as the immediate support. We would advocate investors to hold cash with the possibility to bargain hunt eventually.

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